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Is it fair that Palin get the domain Palin2012 from someone who purchased it already? What does that owner get in return or do I don’t understand how this work. You call it a squatter but isn’t it good business sense if you have a domain name of someone who is famous? I would hope that if she does get this approved and the individual who obtained or even purchased this domain get compensated for it to the tune of millions.

We disagree. A trademark owner has the right to prevent others from using their trademark, or variations of it, for related goods and services. And registering a domain contaioning a trademark, with the expectation of selling it to that trademark owner, is cybersquatting, as defined under the law.

Here is the test used by those who rule on these cases:

In determining whether the domain name registrant has a bad faith intent to profit a court may consider many factors including nine that are outlined in the statute:

1. the registrant’s trademark or other intellectual property rights in the domain name;
2. whether the domain name contains the registrant’s legal or common name;
3. the registrant’s prior use of the domain name in connection with the bona fide offering of goods or services;
4. the registrant’s bona fide noncommercial or fair use of the mark in a site accessible by the domain name;
5. the registrant’s intent to divert customers from the mark owner’s online location that could harm the goodwill represented by the mark, for commercial gain or with the intent to tarnish or disparage the mark;
6. the registrant’s offer to transfer, sell, or otherwise assign the domain name to the mark owner or a third party for financial gain, without having used the mark in a legitimate site;
7. the registrant’s providing misleading false contact information when applying for registration of the domain name;
8. the registrant’s registration or acquisition of multiple domain names that are identical or confusingly similar to marks of others; and
9. the extent to which the mark in the domain is distinctive or famous.[10]
http://en.wikipedia.org/wiki/Anticybersquatting_Consumer_Protection_Act